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THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN
OF BALANCE SHEET

Question Posted / laxman

Answers were Sorted based on User's Feedback



THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / manish.p

The debit balance in P&L A/c represents Loss which is shown
om the asset side of Balance Sheet as a separate line item
as per the requirements of Schedule VI of Companies
Act,1956.This is because it is a fictitious asset.However
if the company has adequate surplus then it should be set-
off against it and only the net balance of Reserves shown
on Liabilities side.

Is This Answer Correct ?    72 Yes 14 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / swathy

Hey teja, it comes in Liabilities side which is added to
the reserves and surplus. The logic that debit balance in
p&l a/c being netprofit, hence in assets side is wrong.
The debit balance of P&L a/c i.e., netprofit comes to
balance sheet added to the reserves.

Is This Answer Correct ?    117 Yes 61 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / sagar

the right answer is debit balance of the p&l a/c is shown as
"ASSET" in the balance sheet.

Is This Answer Correct ?    21 Yes 6 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / sagnik das

DEBIT BALACE OF P/L A/C MEANS : IN P/L A/C, DEBIT SIDE IS
HEAVIER THAN CREDIT SIDE.AS-DEBIT SIDE REPRESENTS THE
EXPENSES AND CREDIT SIDE REPRESENTS THE INCOMES,THEN IN
THIS SITUATION EXPENSES IS HEAVIER THAN INCOME.AND THIS IS
ABSOLUTELY CALLED AS LOSS.

AND THIS LOSS IS POSTED IN THE ASSET SIDE OF THE BALANCE
SHEET.

(REMEMBER: PROFIT IS A LIABILITY TO BUSINESS.AS IT IS TO BE
RETURNED TO SHARE HOLDERS.IN "BUSINESS ENTITY CONCEPT" IF A
BUSINESS OWES SHARE HOLDERS FOR PROFIT AS SHARE HOLDERS ARE
TREATED AS OUTSIDE AND SEPARATE ENTITY OF BUSINESS.

IN VIS A VIS LOSS IS TREATED AS ASSET.AND IT IS SHOWN IN
THE ASSET COLUMN OF THE BALANCE SHEET.)

Is This Answer Correct ?    15 Yes 1 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / padmakar

It is expenditure over than income because of it should be
shown in assets side. Other wise that losse shoud be
decrese from capital. Income over than expenditure it shoud
be showne in reserve and surpless.

Is This Answer Correct ?    14 Yes 1 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / eldose

As per the schedule VI the debit balance of P & L should be
shown in the assets side

Is This Answer Correct ?    17 Yes 5 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / sai bhaskar reddy.bandi

the debit balnce of profit&loss account indicates net
loss , hence it can be shown at assets side of balance
sheet under miscellaneous expenses.

Is This Answer Correct ?    14 Yes 2 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / manish goyal

The Debit balance of P&l comes in assets side of Balance
sheet. Debit Balance means expenses over the incoes (i.e.
loss).Loss is shown in Assets side of Balance sheet

Is This Answer Correct ?    20 Yes 12 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / hemanth kumar

Hi Kirti, don't get confused, understand the question
clearly. Here P/L debit side means expenditure, since the
question clearly say's that debit side is more, that means
to say that expenditure is more. In other words it is net
loss. Hence it goes to balance sheet asset side.

Is This Answer Correct ?    8 Yes 0 No

THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET..

Answer / madhu

Here the Debit balance of the P& L A/c means Loss. sO it is
shown on Assets Side of the Balance Sheet or the same is
deducted from the capital A/c

Is This Answer Correct ?    9 Yes 2 No

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